AO World boosts profit forecast, launches £10 mln share buyback after strong growt

Published 15/09/2025, 07:54
© Reuters.

Investing.com -- AO World (LON:AO) lifted its profit outlook and announced its first-ever share buyback on Monday after reporting double-digit revenue growth in the first half of the year.

The online electricals retailer said B2C revenues rose 11% in the period, while group revenues increased 13% including contributions from MusicMagpie. 

The UK-based company reiterated its guidance for double-digit B2C growth in fiscal 2026.  Adjusted profit-before-tax guidance was raised from a range of £40 million to £50 million to £45 million to £50 million, a 6% increase at the midpoint.

AO said it will launch a £10 million share repurchase program. The company reported a net cash position of about £70 million for the first half, ahead of earlier estimates. 

Following the announcement, Jefferies lifted its forecast for AO’s fiscal 2026 net cash position from £35 million to £45 million.

Jefferies said the company’s trading update marked the 10th upgrade to guidance since the summer of 2022. 

Analysts cited the company’s performance in areas such as service, its membership scheme and cost management. No category-specific revenue figures were provided.

Shares of AO closed at 83.40p before the announcement. Jefferies maintained its “buy” rating and a price target of 150p, representing an 80% increase from the latest close.

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